Johor Regent Says He Will Pay Singapore Land Levy Estimated At Above S$2 Billion

Johor's Regent, Tunku Ismail Sultan Ibrahim, has dismissed reporting that a Singapore tax bill is complicating the planned sale of his 16.6-hectare landholding near the Singapore Botanic Gardens.

Responding on X on Thursday to a news report about the levy, he said that as a regular taxpayer this was normal, that there was no complication, that he was more than happy to contribute to both countries, and — in a closing line widely quoted since — that they should make it double.

The number nobody agrees on

The size of the levy is being reported four different ways, and the differences are not only about currency.

Bloomberg, which broke the story on Sept. 2, put it at more than US$1 billion. The South China Morning Post reported US$1.6 billion. Malaysian and Singaporean outlets have rendered it as more than S$2 billion. And Nicholas Mak, chief research officer at property portal Mogul.sg, estimated the charge at between S$2.5 billion and S$2.7 billion.

At prevailing rates, S$2 billion is roughly US$1.55 billion, so the SCMP and the S$2 billion figures are broadly the same estimate in two currencies. Mak's range is materially higher than either.

Uncertainty over the exact size of the bill, given the complexity of the deal, has itself been reported as a concern among prospective buyers.

What the charge is, and who pays it

A land betterment charge is levied when government planning approval or other permissions increase the value of land. It is payable by the owner at the time development is approved — but owners may nominate one or more other parties to pay.

That provision is the point on which the two accounts differ.

Bloomberg, citing people familiar with the negotiations who asked not to be identified, reported that Tunku Ismail wants any buyer to foot the bill, and that some Singaporean and Malaysian developers had chafed at the additional cost. His public statement says he is happy to pay taxes. It does not address who would be nominated to pay this particular charge.

A representative for Tunku Ismail declined to comment on the reported sale. The timing of any government approval for development is unclear, and the charge does not crystallise until approval is granted.

The land

The parcels sit on Holland Road and Tyersall Avenue, close to the Botanic Gardens, a UNESCO World Heritage Site. Land in that area has been under the private ownership of the Johor royal family for generations.

The current holding results from a swap agreed with the Singapore government in June 2025. Tunku Ismail transferred 13 hectares nearer the Botanic Gardens to the Singapore government, and received 8.5 hectares of state land in exchange, the two sides describing the parcels as of comparable value. He had held 21.1 hectares at Holland Road; the swap leaves him with 16.6.

The Singapore Land Authority and Urban Redevelopment Authority announced the exchange jointly. Its effect was to move any future development further from the heritage site.

What is proposed, and what it might be worth

In March, the URA said Tunku Ismail had applied to develop the land for residential use, and that it was proposing to rezone the parcels for low-rise, low-density housing at a gross plot ratio of 1.4, together with the large detached homes Singapore designates as good class bungalows.

Mak estimated the site could be worth between S$3.8 billion and S$4.7 billion once rezoned. Another valuer cited by Bloomberg put the potential value at at least S$3 billion.

A transaction covering the whole site at those levels would rank among the largest property deals Singapore has seen. Tunku Ismail's representatives are reported to have widened their search for buyers to the United States and elsewhere.

What to watch

Whether the URA grants the rezoning, and when. The charge is triggered by approval. Until that happens there is no bill, only estimates — which is part of why the figures in circulation vary so widely.

Whether a nomination is made on who pays. Singapore's rules allow the owner to nominate other parties. Any eventual sale agreement will settle a question that the public exchange so far has not.

Whether a buyer emerges at all. Reported interest has widened beyond Singapore and Malaysia. A deal at the estimated values would be among the country's largest; no deal, or a partial sale, would say something about how the market has priced the levy.